The U.S. Environmental Protection Agency (EPA) is in the initial planning
stages of examining the underground storage tank (UST) regulations that were
finalized in 1988 and have asked PEI to provide input on the process.

There are four primary areas where EPA will concentrate its review of the
regulations:

Technical Fixes - This includes corrections of a technical nature,
such as areas where the regulations reference outdated standards.

Deferrals - The 1988 regulations contain deferrals of some UST systems
from some or most of the technical requirements. Examples include
emergency generator USTs (leak detection only), airport hydrant fueling
USTs, and field constructed USTs. The decision would be to either continue
to defer, regulate or exempt currently deferred systems. There are a few
categories of tanks excluded by statute and not on the table for review.
They include farm or residential tanks 1,100 gallons or less storing motor
fuel for non-commercial purposes, tanks storing heating oil for
consumptive use on the premises where stored, and aboveground tanks.

Regulatory Gaps - There are a few areas in the regulations where, even
after years of implementing the requirement, releases to the environment
can still occur. Gaps in areas such as testing requirements for spill
buckets and sumps, leak detection for spill buckets and dispenser sumps,
vapor releases, installation testing, and applicability to newer
alternative fuels could be examined.

Deregulation - Regulations that impose a burden on the tank owner and
do not improve environmental protection could be revised.

PEI has been invited to participate in the process of identifying
potential targeted changes to the regulation. PEI members' comments and
suggestions to improve the regulations will be collected and compiled by
PEI, and then presented to EPA later this month. Members who wish to have
input into the process should submit suggestions to Bob Renkes
rrenkes@pei.org by June 18. Please
confine the comments to the four areas identified by EPA and make certain
they cover the federal, not state, regulations.

HIGHER ETHANOL BLENDS BACK IN THE NEWSEthanolproponents are
expected to file a long-awaited waiver request asking the Environmental
Protection Agency (EPA) to allow a larger percentage of ethanol (15 to 20
percent) into conventional gasoline. Minnesota and the Renewable Fuels
Association are developing the waiver request, which if granted by EPA would
apply nationally. Currently under the Clean Air Act, EPA allows gasoline to
contain no more than 10 percent ethanol.

Meanwhile, the Department of Energy (DOE) and EPA are studying the possible
increase in the amount of ethanol allowed in gasoline. Speaking at a forum
of the Society of Automotive Engineers, Brian West, a fuels researcher at
DOE's Oak Ridge National Laboratory, said that even if every gallon of
gasoline contained 10 percent ethanol, it would not be enough to comply with
the Energy Act's requirement that the nation's motor fuel supply include 36
billion gallons of renewable fuel by 2022, up from 4.5 billion gallons in
2007. The oil industry estimates that all petroleum in the United States
will be an E10 blend by 2010.

The ethanol industry is pushing for higher blends
before supply outstrips demand. There seems to be a sense of urgency to file
the waiver request amid fears from ethanol proponents that the next
presidential administration may not be as receptive to the idea or that
Congress may tweak or even undo the Energy Act's renewable fuel standard.

Opponents of the waiver requestwarn of unintended consequences of
increasing ethanol in gasoline, including increases in ozone and other
pollution, and damage to vehicles and their engines due to ethanol's
corrosive effects.

PEI BOARD ELECTION DEADLINEIt is time to begin the process of electing members to the PEI Board of
Directors. Under PEI's election procedure, the official representative or a
duly appointed alternate must request to have his/her name included on the
ballot. A form for that purpose was sent May 22 to the official
representatives of PEI member companies from the even-numbered membership
districts of the distributor and manufacturer divisions and from the
affiliate division. The form must be received in Tulsa by the close of
business on Thursday, June 12, for the name to appear on the ballot.

PETROLEUM MARKETING NOTES
7-Eleven Inc., Dallas, Texas, said that it plans to convert
approximately 475 company-operated convenience stores in the greater
Orlando, Tampa/St. Petersburg, Daytona and Fort Myers areas into franchised
operations. The company said that nearly 4,100 of the firm's 5,400 stores in
the United States are now franchised.Worsley Operating Company, Wilmington, North Carolina, has finalized
its acquisition of Li'l Cricket Food Stores Inc., which operates 88
convenience stores in South Carolina. Valero Energy Corp., San Antonio, Texas, has signed an agreement to
buy 72 convenience stores and fueling kiosks in Arizona, Colorado,
Louisiana, New Mexico and Texas from Albertson's LLC, Boise, Idaho.
Albertson's will continue to operate fuel centers throughout Florida.Uni-Marts LLC and six subsidiaries have filed for Chapter 11
bankruptcy protection. The State College, Pennsylvania-based company
operates a network of 283 company and dealer-operated convenience stores and
gasoline stations in Pennsylvania, New York and Ohio.Reliance Industries Ltd. recently closed down its 1,432 fuel stations
in India because it has not been able to compete with state-owned firms that
sell gasoline and diesel at subsidized prices.New West Petroleum LLC, Sacramento, California, will leave the retail
petroleum business by selling its 30 retail sites in California. The company
plans to expand its wholesale fuel business.

REGULATORY BRIEFS
Indiana. The Indiana Department of Agriculture has increased the amount
of money it will provide retailers, commercial refueling locations, cities,
towns, counties and townships to install E85 fuel dispensers from $5,000 per
dispenser location to $20,000. The state has nearly $1 million in grant
money available.

COMPANY APPOINTMENTS
Ameron Fiberglass Pipe, Houston, Texas, has appointed Mark Wickman as
its fuel handling market manager. He has extensive experience in the
distribution and manufacturing aspects of the petroleum marketing industry.
Mark will be based in the Dallas Metroplex.RDM Industrial Electronics, Inc., Nebo, North Carolina, has appointed
RJ Ames Companies as its representative in Minnesota, North Dakota and South
Dakota. Bob Shaw Associates, Diamondhead, Mississippi, now represents S.
Bravo SystemsInc., Commerce, California, in Mississippi,
Louisiana, Arkansas, Alabama and western Tennessee.

MEMBERSHIP APPLICATIONS
Turkey distributor. Saben Akaryakit ve Teknik Malzemeler San. Tic. AS,
Saglik Cad. IDE Is Merkezi No. 13, Kat. 2, Gokturk-Kemerburgaz, Istanbul,
Turkey 34993, has applied for distributor division membership. Seckin
Ozdemir is a board member of the company, which was established in 1953. The
company represents EBW, FEPetro and Roseman. The firm installs and services
equipment across Turkey. Sponsored for PEI membership by Jay Walsh,
Franklin, Madison, WI.Illinois management consulting company. JMM Management Group, LLC,
2496 Technology Drive, Elgin, Illinois 60124, has applied for affiliate
division membership. Jon M. Marinas is president of the firm, which was
established in 2002. The company provides comprehensive
regulatory/environmental compliance and information technology services.
Sponsored for PEI membership by Brad Hoffman, Tanknology, Austin, TX.New York fuel additive company. Kinetic Fuel Technology, 1205 Balmer
Road, Youngstown, New York 14174, has applied for affiliate division
membership. Timothy Booth is president of the firm, which was established in
2003. The company provides a bio-based formulation developed to eliminate
water contamination in fuels with additives to improve the cleaning effect.
Sponsored for PEI membership by Craig Smith, Smith&Sons, Chinchilla, PA.Missouri service consulting firm. Occu-Tec, 6501 East Commerce
Boulevard, Suite 230, Kansas City, Missouri 64120, has applied for service
and construction division membership in PEI. Doye R. Ewert is project
manager for the firm, which was established in 1983. The company offers
comprehensive fuel system testing, maintenance and storage solutions, as
well as turn-key emergency and disaster fuel services. Sponsored for PEI
membership by Brian Berkle, ValleyTank, Houston, TX. Mississippi installation and service company. PetroTech, 30055
Bickerstaff Road, Nettleton, Mississippi 38858, has applied for membership
in the service and construction division of PEI. Steven B. Gilmore is an
owner of the firm, which was established in 2006. The company installs and
services petroleum marketing equipment. Sponsored for PEI membership by Rod
Smith, Freedom, Kennesaw, GA.

The
TulsaLetter (ISSN 0193-9467) is published two or three times each month by
the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice
President, Editor. Opinions expressed are the opinions of the Editor. Basic
circulation confined to PEI members.